TFTC: A Bitcoin Podcast - Rabbit Hole Recap #177: The gaslighting heats up

Episode Date: December 16, 2021

This week Marty and Matt discuss: - Jack announces independent board to run BTrust initiative funded with 500 bitcoin donation from him and Jay-Z to fund bitcoin development in Africa and India - nonprofit "Sats Center" launches to educate regulators on bitcoin - Surveillance company "Chainalysis" launches lightning network product - Coinbase received 5562 law enforcement requests the first three quarters of this year - Payment Pools proposal - Mercury v0.4.65 - Sparrow v1.5.5 - Bisq v1.8.0 - BlueWallet v6.2.15 - Caravan v0.3.13 - Zap desktop v0.7.5-beta - Umbrel v0.4.10 - Galoy Raises $3M - Ledn raises $70M valued at $540M - NYDIG raises $1B valued at $7B - white house inflation comments - Kollider LN analysis Shoutout to our sponsors: Cash App Unchained Capital Braiins - Daniel's thread Compass Mining HodlHodl Bitcoin 2022 - use the code TFTC for 10% off

What is up, freaks? It's your boy Marty Bent here to introduce this rip of Rabbit Hole Recap. I don't know what happened because it hasn't happened yet. Cara and I are recording these ads before we record, trying to be efficient with our time. Low time preference. We got bit devs tonight in Austin, and so we've got to get there. I'm interested to see what Matt and I talk about. Apparently, Matt has a bad neck today. I woke up to text from Matt, can we do Friday? Can we do Friday? My neck, my neck. I said, sir, I'm going to be traveling tomorrow. You're going to have to fight through this one.

So this is going to be Matt's flu game. Let's see how he does. This is brought to you by good friends of the motherfucking Cash App. Cash App is how you stack sats, send sats, receive sats, and sell sats, if you so please. Sats are the standard on the app. Cash App makes it very easy to DCA into sats.

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your tickets yet, get on it. The ticket prices are only going to go up as more and more sell. So enjoy this right freaks. You've had a dynamic where money's become freer than free. If you talk about a fed, just gone nuts, all, all the central banks going nuts. so it's all acting like safe haven i believe that in a world where central bankers are tripping over themselves to devalue their currency bitcoin wins in the world of fiat currencies bitcoin is the victor i mean that's part of the bull case for bitcoin if you're not paying attention you probably should be probably should be matthew is your your neck okay it's a little bit fucked up but

anything for the freaks freaks I woke up to a text from Matt can we do this tomorrow my neck my neck fucked it up it looks like it I'm happy the ice recommendation you were doing pure heat ice heat ice heat ice heat

on off yeah I mean I just woke up and it was fucked yeah that was a I woke up I was like oh no what's going on Matt can't do it tomorrow I'll be traveling I'm sorry I popped for Excedrin and I message marty yeah i feel like excedrin you messaged me i was like i mean i don't think

excedrin was i think you need ibuprofen there excedrin is more for opening the brain capillaries does excedrin not have ibuprofen in it i don't think so i think it's like one of those like vessel openers for my you could have told me bro yeah i'm not a doctor i'm not allowed to give medical advice even though i've been doing it whatever i'm all hyped up on caffeine because except you're nice caffeine in it which wow uh how's your week been it's been good it's been good been uh busy but good busy how's your week been marty good busy too i can't believe it's thursday bitcoin's been uh ranging i guess it's always a little bit more quiet around the holidays yeah

well the Bitcoin I'm trying to think it's been quiet on a lot of fronts I've been off Twitter a bit I guess just last week was a fucking whirlwind to chill and yeah I mean we did the party rip

in Nashville vibes were high I love the party rips we need to do it more yeah we're going to do it a lot more in this coming year that's for sure yeah because we're going to have the studios set up in Austin and Nashville and when one travels to the other

it should be often we'll all be there we'll get more freaks into the studio as well did you see that so I guess the coin market cap bug Bitcoin was what was Bitcoin $789 billion

on coin market cap yeah we were all trillionaires for a day I was recording with Steve Lee while that was all unfolding a little bit crazy i feel like that could have been fun well shout out to that steve lee the don um doing big work but that that coin market cap thing number one if you're still using coin market cap shame on you not gonna make it number two wasn't that a product of that java backdoor that was discovered last week i have no idea what caused it didn't really look into it

except that i thought it was funny that you said no one should use coin market cap first of all wait a lot of people do i know but fucking coinbase takes their for their like price ticker widget they take uh yahoo's price feed which is sourced from corey market cap which is like so ridiculous you would think i mean they run one of the largest exchanges in the world how do they not have their pricing that's odd that's what i tweeted out like still using queen market cap not going to make it then under that like waiting for oracle blowout risk it doesn't seem like any oracles got blown out by this and that's surprising considering i didn't know coinbase was connected to yahoo finance well i know like the i mean there's tons of issues with oracles uh what marty's saying when

he says oracles he means like there's like in different d5 protocols they need to know what the us dollar prices at any given time um and there's no way to natively do that on chain in a trust minimized way so what they do is they have a bunch of centralized sources and usually they do like some kind of weighting against them yeah but if those centralized sources report uh then you can have like crazy liquidations and stuff yeah so it doesn't seem like any of that happened at least that i haven't heard um which is yeah i mean pleasantly if you're using a single oracle and that Oracle scored market cap, then you're really not going to make it.

Not going to make it. But, Carr, can you look up the Java exploit? Apparently there's been this backdoor on the internet that a bunch of Minecraft players discovered. I think a bunch of teenagers discovered this backdoor and figured out how to, like, bork Minecraft. And it apparently... Have you ever played Minecraft?

No, I haven't. I don't really understand it. It makes me feel like a boomer. from what i understand it helps kids learn to code um i didn't know about that yeah yeah so apparently this is like a backdoor in java so anything yeah the log so look up log4j um is the exploit is the library that's getting exploited did anyone say that's what going back what happened to coin market cap i think that's what people were pointing to yeah um so to the freaks i mean just for some actionable advice if you are using coin market cap considering using

uh bitbo.io or or clark moody's dashboard or clark moody's dashboard and if you're going to shit coin and use coin gecko i guess coin gecko is probably better i'm sorry maybe too i don't know if you got yeah if you're gonna show you the old on-chain fx yeah the uh that's the other thing too if you're just following clark moody's dashboard or bitbo or cash app or river.com or like the block clock on your wall which follows clark moody's dashboard or bitstamp well you can pick you can pick like which exchange which source yeah um yeah so be aware let's go back to that log uh 4j vulnerability because it seems to be a big one i'm surprised weren't on top of this because there's a lot of people on my uh like uh opsec twitter bubble that

my list that were throwing a big i'm in a temporary studio environment here so i cannot see any of that writing so it's all on you marty what explain this vulnerability to us uh so the log4j team has been made aware of a security vulnerability cve 2021 45046 that has been addressed in log 4j 2.1 2.2 for java 7 and 2.16.0 for java 8 and up summary apache log 4j thread context message uh details was found that the fix income uh there so there was a cve bug inversion 2.15.0 of log apache log 4j and that patch was incomplete in certain non-default configurations.

This could allow attackers with control over thread context, map, MDC, input data when logging configuration uses a pattern layout with either a context lookup, for example, some code. Can you unhighlight that? I can't read what the blue is. It's a craft malicious input data

using a JNDI lookup pattern resulting in a denial service. So basically, a big DDoS attack potential. Okay, so it couldn't have been this. It couldn't have been CoinMarketCap. They could have DDoSed the server and then put their own shit in front of it. Who knows?

But yeah. Okay. Don't trust the single source freaks. Any freaks in the comments know about this Log4J vulnerability? is it big am i overreacting did java release a fix for it yet i think so yes i mean oracle yeah um all right let's get to clark moody's dashboard then we'll get into things here i'm gonna list i got kids screaming in the background of my neighborhood uh market price of bitcoin

according to clark moody's dashboard is 48,065 cuck bucks one cuck bucks gonna get you 2,081 sats hovering at a 908.6 billion dollar market cap we are 30.4 percent away from the previous all-time highs which were 69 010 according to clark's dashboard currently at block 714 427 since the last time we met uh bitcoin passed the 90 of the supply being distributed to them to the market threshold. So over 18.9 million Bitcoin. Only 10% left to be mined. Less than 10%.

Less than 10%. 90.01% of all Bitcoin that will ever be mined have been distributed to the network already. That is 18,902,579 Bitcoins. When measured in US dollars, that last 10% at point of being mined could be worth more than the previous 90%. Yeah.

and most likely will if bitcoin keeps doing what it's been doing and if it does that and goes beyond since we last met we had a difficulty was that yeah we had 8.3 percent upwards difficulty adjustment uh we hit hash rate all-time highs too i'm sure we'll get into that uh the next adjustment is estimated to be on uh december 24th christmas eve that's a 1253 blocks away and as of Right now, blocks are coming in at 10 minutes and 14 seconds on average since the last retarget. So that means we'll have a negative 3.1% adjustment. Would be a great Christmas present.

Would be a very good Christmas present for anybody who has miners up and running and has them plugged in during that adjustment. Ooh, big mempool for Clark here right now. 24,281 transactions in Clark's mempool. 29.7% of those are replaced by fee transactions. samurai whirlpool unspent capacity has been hovering in this level for quite a while at 4346.84 btc or 208.8 million dollars worth of unspent value director of cesus and log 4j is the most serious threat she's seen in her 10-year tenure

yeah oh there you go i heard it was a big one yeah apparently um how much is bitcoin in cores lights well it depends i paid six dollars for a cores light um you paid six dollars for that not for this one for a cores light at a bar like last weekend so six times 2081 uh it's 12 000 that's more than yeah 12 000 six times eight 12 426 sets at a bar at a bar somebody I mean

that's at $2,000 $6 for a Coors Light man $2,081 that's a cuck buck I multiplied that by 6 you guys can check my math yeah

that sounds right to me yeah Lone Star is 2,000 sats so it's less than a dollar it's like 4,000 4,100 sats something like that

cars are we're nailing the important topics here yeah speaking of important topics should we just jump into the list sir yeah

let's fucking do it i actually have a a qualm to pick with you right yeah you just have it dorsey announces independent board to run b trust initiative funded with 500 bitcoin donation from him and jay-z to fund bitcoin development in africa and india dorsey yeah jack i mean i don't know when i sometimes when i when i just say jack people aren't sure if it's like maulers or dorsey okay okay so and also i was in a lot of neck pain when i wrote that list this is um i mean this is i mean the market's been aware of this 500 bitcoin fund for a while i think probably over a year now jay-z and jack have been scouring africa for a board to overlook the trust and it seems like they picked uh held the team here so we've got uh actually carla kc carla kirk cone who's been

on the podcast before uh abu bakar nur khalil uh obi nosu and ojima okai uh i know carla personally she's been in my apartment she's been on this podcast she's an incredible lightning network developer incredible soul her family uh gets into the winemaking business as well uh obviously obi uh who uh started coin floor over in the uk he's been around bitcoin for a while i can only speak to knowing carla and knowing of obi haven't met obi yet um but i'm sure abu bakar and uh ojoma are stand-up citizens as well so first of all the whole idea of b trust is uh in february last year jack dorsey and jay-z each contributed 250 bitcoin to an endowment focused on bitcoin development and adoption in africa and india uh since then uh they've been fielding uh applications

for an independent board to manage that endowment uh we were actually i was talking about this with steve uh on tuesday and he told me that we were going to have to wait to hear about the board around like two weeks hopefully by the end of the year and the next day the board gets announced um but all he said that all they got over 7 000 applications uh to be a part of this independent board and now this independent board uh was was screened uh jack met them personally i believe steve met them as well and now they're going to move forward they have total control of this 500 bitcoin endowment and what to do with it and what's really fucking awesome to me in this situation and so february of last year i really feel like the price was like 27k or 30k steve

said it was more but this idea of bitcoin endowments for causes where this endowment you know if we're right and bitcoin is you know truly designed to pump forever and increases with adoption uh will constantly grow in purchasing power so if they draw down on it um they if they don't draw down on it too much in the short term it could just exist for you know in the perpetuity years uh funding development and adoption in africa and india no there's a i mean we have examples of not not necessarily endowments but companies in the bitcoin space that have raised money uh and raised bitcoin to to basically have runway for their company and they did it at a time

like anybody was raising for their company in Bitcoin in like 2015, 2016. Some of them are still sitting on a fat stack that they're just able to draw on. Don't have to go raise and dilute their company brand.

So if you are going to do a raise as a Bitcoin company, maybe you allocate a little bit more of that raise to purchase some Bitcoin to hold on the balance sheet to potentially avoid having to dilute your equity

in the future. A hundred percent. But just to go back to the significance of this initiative, I would love to see basically more endowments get created that hold Bitcoin and that are trying to further different goals for improving the world that we live in. And another one example we have, I think it's, is it Charity Water? It's one of the water. Yeah, Charity Water. They're accepting Bitcoin donations that they promised not to sell for a certain number of years. Five years, 2025. And a specific endowment.

So I would love to see more initiatives like this. I mean, it's fucking massive. Yes. Right now it's worth like $25 million. I had to remember his name. Scott Harrison, the founder of Charity Water, has been on the podcast before. I'm double-checking that right now. How much does it say they have in that endowment right now?

Let's check. Get a charity water. 101.29 BTC. So that's pretty incredible. So that's about $5 million. And this B-Trust is about $25 million right now. Yeah. And we have it up on the screen for you freaks at home

who aren't watching the live stream. The Bitcoin Water Trust is an experimental growth fund for clean water. donate any amount of bitcoin and we'll hold it until at least 2025 um yes if you go up there i should be i donated i think five million cents i'm not a winklevi or or scott galloway but um should be on this list i highly recommend considering if you're looking at it especially at the end of the year you're looking for like tax beneficial um write-offs and you want to get to give that money to charity

instead of the government, I think this is a good one. 100%. Yeah. And if the whole B-Trust idea interests you, definitely check out the most recent Zillow Dispatch

because me and Steve talked about that at length. Yeah. And if you want to follow them on Twitter, they're at B-Trust Team. B-T-R-U-S-T-T-E-A-M. If you want to follow them.

Shout out to me, the newborn members of the Bitcoin Trust. fuck yeah cheers yeah looking forward to see what you guys put out there welcome to team bitcoin i mean they were already on team bitcoin they just have new titles i guess fair enough um staying on the non-profit tilt uh sat center launches to educate regulators on bitcoin so this is i believe riot was behind this um riot blockchain yes that is my understanding i think they might have spearheaded it,

but they got a bunch of other organizations involved. Yeah, so apparently it's a non-profit that will provide education to the public, elected officials, and regulators seeking to learn more about Bitcoin and how it can empower economic growth and financial inclusion. Yeah, so Coin Center, you got the

blockchain, what is it, the blockchain commons? I don't know, that's Chris Rowland's thing. That's completely different. I think it's like the blockchain association or something like that. They're on the hill now i guess it looks like we have sat center as well so and then there's a couple other there's a couple other forming right now too as well so yeah what do you think about this should we should

we be engaging like this is this important um i think it's you know it every big corner has you know a different skill set and uh different roles to play and uh those that are good at you know politicking and lobbying uh what better way to use their skills than to at least try and soften the blow against us uh as private bitcoin users uh in the short term but i think ultimately like the real answer is is you know free open source tools um that you can use to to take you know sovereignty over over your data whether that's encryption for messages or whether that's securing your own keys using your own node for bitcoin right yeah yeah i think uh those things are extremely important and i think again in my tilt is to glean into the states like yes

work at the federal level may have good returns particularly in just stopping the horde of incompetent politicians from uh fucking things up for us in the short term but i think a lot the leverage that is to be realized is at the state level we already have realized some of that leverage too particularly in Wyoming here in Texas there are big things that happen Kentucky obviously has some walls

the leverage at the state level went the opposite direction in New York with the bit license I know there a lot of people are pissed off about that people are leaving because of that and have been leaving I mean 100% the state level is you know important and

but we also i think we also need people fighting at the federal level and i would say that uh i'm pretty sure this is the first it's important to note that this is as far as i'm aware the first major organization in this type of role that is bitcoin focused that's bitcoin only and it should be interesting to see how that changes certain narratives um yeah because we saw a bunch of them i mean god we saw so we had over the last two weeks a bunch of representatives from the cryptocurrency industry on capitol hill as well as the fed meeting as well uh on the congress had jerome powell to ask him a bunch of questions uh so it's there's certainly a lot of confusion on capitol hill particularly about what's going on out there i mean you had elizabeth

warren like saying that d5 is going to destroy capital markets and the financial system then you had powell come out and say hey i actually like stable coins and no i don't think like like bitcoin's a systemic risk and there was just a lot of uh conflicting uh viewpoints at least from what i saw coming out of capitol hill as is tradition yes and then you had the shit corners getting on there and they're they're slimy about bitcoin slimy motherfuckers i called it this week i think uh sbf he's going to be the jihan wu uh of this cycle he's going to he i mean ftx i don't know about that they've got arenas i mean he's i mean he owns a shit ton in one way is he going to be g on i mean he's going to try and use his position as like the darling of the the exchange

arena to try to force people away from bitcoin and it's going to backfire he was on capital hill saying we should move to something like solana because it's proof of stake it's better for the environment he blocked me months ago because i called him out when he started like trying to push that narrative forward so sam if you're listening i'd love to have you on i yeah i mean i guess there's some similarities with jihan yes pull this up pull this up the environmental impact there's a bunch that there's a bunch of reasons they're different right yes proof of work networks i mean is it though he wanted yeah i mean jihan was you know basically the lead of the majority of bitcoin miners you know had a massive you know massive investment

and influence in the bitcoin space put all of his balls on the table in like an outward fork attack on bitcoin and lost a ton of money and influence was like the the main asic manufacturer at the time like what spf's influence over bitcoin is is rather minimal in comparison significant train like gian was internal yeah i guess there's another layer there's probably better analogies for individuals but maybe he'll be and gian got absolutely wrecked do you think spf is going to get absolutely wrecked i don't know we'll see the richest under 30 and uh yeah he's donating a lot he's donating he's donating a lot to the big guy we know that um but yeah this is i mean we'll see it's yet to be seen much more successful than me i would prefer if shit corners didn't use this

energy bullshit. Yeah, pull that back up, we're going to read it to the people. So this is what he's running with. Proof-of-work networks require substantially larger energy consumption than proof-of-stake networks. We aim to incentivize our customers to utilize blockchain technology with the lowest energy usage and therefore the smallest impact

on the environment. A single Solana transaction requires about the same amount of energy as two Google searches. Empirically, based on our analysis of our customers' actual activity, more than 80% of the blockchain transactions originating from FTX occur on proof-of-stake blockchains.

That's what I'm saying. He's saying 80% of the transactions. It's a perfect example that he doesn't have that much. He's not that involved with Bitcoin. He probably holds his savings in Bitcoin.

He's going to attack Bitcoin. He already is attacking Bitcoin. You want to consider this an attack? It's more of an external attack than an internal attack. we're fighting over semantics of the particular G-Hon hits different, Marty G-Hon hits different, we have a bunch of freaks that are here that weren't there for the G-Hon days

fuck your mother if you wanna fuck better metaphor that's all better metaphor I'll think about it, think on it but yeah, this energy bullshit is tired and old yeah, we talked about this last week too

the shitcoiners are like, oh we're all in this together we're competing, we're gonna uplift we need to work together like we like bitcoin and then like behind your back you're like bitcoin's destroying the environment come buy my shit coin which i own 80 of or something yeah um so be aware freaks be aware those attacks are going to come uh as we move forward it's going to heat up there's going to be a lot of noise you don't have a super bowl commercial no no he probably wanted one though that's yeah yeah i mean this guy's buying influence you got the the stadiums the commercials

the politicians yeah I see similarities very fiat very fiat mindset if you will he doesn't know how to tie his shoes

a lot of people he's fucking killed it though is that Arthur yeah yeah no I can't see yeah Chad Arthur

versus the billionaire virgin FTX BitMEX is just full BitMEX is just full KYC now

it's sad when did that happen i forget has it been like eight months now or something it's been quite a while quite a while the end of an era i guess it's been a year it was like fall of last year maybe yeah um time fucking both flies and just that feels like a decade ago yeah time drags the price uh consolidates like it has over the last few weeks uh next topic chain analysis launches lightning network product everybody's like using this samurai guys particularly call them out being like lightning network terrible for privacy this is when you know you made it yeah that but like it's also like took them long enough it's an announcement like do we actually know if they're

able to de-anonymize anything well i mean a lot of what surveillance firms like chain analysis do uh is some smoke and mirrors i mean everything's proprietary so they're going to always oversell themselves um but there are ways to track lightning uh you know i had the episode with anthony ronning that was purely focused on uh lightning privacy and that's still dispatch 21 uh so if this interests you freaks you should go listen to that it's aged very well impressive how you remember that number right off the top of your head well i had to i sent it to someone earlier today of us um because of this article uh or this announcement or whatever so we should be vigilant there are ways to track people in lightning it is not you know the focus hasn't

really been privacy it's almost a byproduct and a lot of the reasons why i would even consider it a privacy tool is because naively sending bitcoin on chain is uh really bad for your privacy um I had a freak, like just a perfect example here. I mean, I have a freak who sent me some sats via lightning and I sent him an invoice. He sent me sats. And then he asked me, like, is there, were you able to do any backwards analysis on my transactions? because i know you tend to you say on the pot a lot that you like if someone sends you bitcoin you do a little analysis on them and you and you check and that process for like a simple user for

a normal user is you don't really get any information from receiving that lightning payment if someone just sent me an on-chain transaction i can just easily just pop it into any block explorer i can pop it into a block explorer that i um run with use my own node and i can I can backtrack that transaction relatively easily um at least see like where it came from um so you get some you you as as a sender rather than a receiver you get decent bump in privacy in the reverse uh as a receiver you know they know a lot about you by by your by your invoice like uh stuff like uh like your node public key potentially an ip address if you're not using Tor, then they can find out your, even if you're using Tor, they can see what your

public channel capacity is. If they're a more advanced attacker, they can probe you and see your private channel capacity. So there's still a lot of work to be done on the privacy front with Lightning. I think pressure from firms like Chain Analysis will further development and focus into privacy on Lightning. I know Wasabi Wallet right now has a one Bitcoin bounty out for a privacy-focused Lightning wallet. So I think we will start to see more privacy-focused development on the protocol side and on the wallet side. And this kind of pressure leads it to that.

And then one last thing to mention with Lightning privacy, it requires more of an active attacker. So they have to be running nodes. They have to be constantly watching the Lightning network. They have to be probing nodes. With blockchain analysis, that ledger is there forever. right so you're able to go back at any point in time in 10 years you can go back if you have new information and you can without actively surveilling it you can go back and just look

at the ledger and apply whatever extra metadata you have yeah and apparently uh the privacy is improving with taproot uh obviously if you can create a 202 multisig that looks like a a single input transaction that hides however we do need to figure out the channel announcement which is a bit of a privacy decayer there but people are working on that and then on top of that and we need taproot adoption to go up yeah that as well obviously

and on top of that Schnoor signatures allows the ability to open those channels and then create point time lock contracts instead of hash time lock contracts and from what I understand that has privacy benefits as well yeah I'm not sure on the exact nuances there but development continues

we are moving forward we are moving like i said like feels like it took them a fucking long time to launch this product yeah and i think part of it is probably because like exchanges and stuff haven't really implemented it yet uh there's been a couple like bitfinex hasn't implemented bid stamp hasn't implemented uh river hasn't implemented obviously strike uh it was built on lightning in a lot of ways um but i i think part of the reason is is you know most of the big volume exchanges don't have implemented. So ChainAnalysis felt like they needed to have

Dogecoin before. Well, I think, I mean, we know Bitfinex, Bitstamp, and a few other exchanges have it implemented between each other, but they're using private channels, so it's harder. It's not impossible for ChainAnalysis. Some of those that I mentioned, I think all of those I mentioned allow user deposits and withdrawals.

River definitely does. Yeah, and so does Bitstamp and Bitfinex. Bitstamp is using Zebedee as their provider, basically. That was announced this week, so isn't it yeah i think bit knob is another one um and also i mean it's easier to do a chain surveillance product on something like dogecoin because it's a fork of bitcoin they already know how it works it's it's a blockchain ledger but with lightning you know there's more nuances

that they need for a product like that as always when we talk about surveillance firms i would tell the freaks um if you go to my website you can get all my different communication platforms whether That's Matrix, Keybase, Telegram, Threema, all of those, but Telegram are probably preferred. If you have access to one of these products, if you have access to Chain Analysis, Lightning product, I will be very discreet. I will not share my source. Love to take a look under the hood. You heard it here first, Freaks.

Communicate with us. You may have something like officially on the TFTC site where we communicate this for and look for that type of stuff. we should me and Marty have been fucking around that like we would just apply for

we want to chain analysis our customers like can you give us access what do you mean like a dropbox or something like an encrypted dropbox yeah or like a flow

that'd be fantastic we should have an onion dropbox where like freaks can just send shit yeah but if they're gonna send us shit too

we gotta get better me and you at actually verifying data and stuff like that so oh yeah yeah 100 i mean me i'm sure you're just shout it out and hope that is right i saw a btc kite there commenting from twitch i like a twitch comment there that's the first one i've seen in a bit oh good we're streaming to twitch again yeah we always have been we just don't have i thought we stopped for a bit no we don't we just don't have a lot of followers there

um what's the twitch i think tftc 21 or maybe it's marty bet i'm not sure well i mean marty doesn't even know the fucking username no wonder we have no followers uh the tftc difference uh we should get uh just for talking business on air i mean we should get a tftc twitch and yeah i think it might be tftc we can uh let me see if you are twitching out of marty bet let's see let me go on restream see what we're connected to just us big kite big kite what fucking what what channel are you on that's right um yeah there's literally one person watching and it's just big kite it's just big kite um on twitch thank you you're on marty bet yeah okay well we're gonna we're gonna make a proper tftc twitch channel so we'll show it

The real Marty Bent is my... Yeah, we're going to make a proper TFTC Twitch channel. Yeah, that was a big squirrel. I thought that was a cat for a second. Yeah, I think it was squirrels hoarding. You have no squirrels in your backyard. Squirrels are getting ready for hibernation. They're curtsy right now.

Chain analysis, if you're working there, just think about what you're doing. You know, just think about it. I've met some of you before. You've put the case forward, but you're really, what you're doing, I mean, it's possible at the Bitcoin network. So we should state upfront the Bitcoin network

needs to get better at preserving individual user privacy. The same with the Lightning network. But on top of that, like if you're working at these firms, like what are you doing? You're middlemanning and basically catering to a despotic surveillance system that revolves around KYC AML regulations that have proven to be wholly ineffective

against actually stopping crime. something like 0.1% of all financial crime has been stopped because of KYC AMO. And the criminals know how to get around it. They either buy information or they steal information and they can get past it. Ask anyone at any of these fraud departments.

Then the average user gets absolutely fucked. Well, it's actually ironic. Because all this sensitive data is stored forever and shared insecurely, stored insecurely. It's a fucking sham. Well, it's ironic because the KYC AML regulations and the data that companies and other, and third parties are forced to collect actually creates the honeypot that criminals go after, right? They go after this information and like spoof, spoof users, um, to, to conduct crime. It's all fucked up. We live in a clown world. We live in a clown world. Somebody tweeted at me earlier today. We're approaching peak clown world. I don't think so yet. I don't think so. I'm Marty. I recall someone else making that call once. That was me.

How long ago was that? Like five years ago? No, it had to be like in the summer. Had to relight my cigar there. Ice up, Matt. Ice that neck up. I used your coughs as a cover for me to pick up the crinkly ice. this is like the most ghetto it's just a bag of it's a ziploc bag of ice that's usually how you do it is that how you usually do it yeah so that's how i grew up doing it at least um it's that time of year again freaks the time of year where we give coinbase props where props are due and that

is because they released we always do this i mean we give them yeah this is like the only time we really talk about them except when they added shiba inu yeah but yeah we got to give them props for props or do i really like this transparency report yeah more people need to do transparency reports i would say kraken really leads the bar on this still yeah kraken does a good job but coinbase wants to get out there too and it's basically uh a dog whistle for like hey citizens of these countries look how much your government's trying to spy on you and as with every year 5,500 law enforcement requests. Yeah, in the U.S.

Get down to the chart. Isn't that total? It's 55 total. And that's the first nine months of the year. Yeah, it's not the last three months. And everyone knows that federal agencies like sending requests during the holidays. There we go. That chart.

Can you click on that? It's like all the U.S. Go down. Let me see the, not the chart, but the grid below it. Yeah, there you go. Um, so 5,562 total law enforcement and agency requests, 2,727, uh, which is the highest volume of law enforcement and agency requests from a single country, which is the United States. So over half, uh, of the requests are just below half of the requests came from the U S uh, and then behind the U S was the UK at 1,044 requests, 51% of law enforcement and agency requests arose from outside the United States. yeah they just did the math for you yeah yeah the the united states was 49 of the requests at 2700

requests so freaks do we live in a free country why is no marty why is the government why is the u.s government the land of the free the home of the brave the the foundation of the the republic democratic republic the federalist system that we live under now is supposed to respect private property rights privacy uh freedom to choose sound money why why are they trying to snoop on all their citizens what's going on here thank you coinbase for putting this report out i love highlighting this is we live in a clown's husband we are not free these people the government does not like you they they treat you as if you're guilty before proven innocent and they're trying to get you to spend more tax dollars they're trying to extract more tax dollars from you so

that can fuck up your life even more. That's what they do with the tax dollars that you give them. They just make your life harder. It doesn't really help at all. They don't really get allocated efficiently or towards endeavors and investments and projects that actually do things to help the American people.

They just make us all worse off. Like free neck massages. You get free neck massages? No, that'd be great if the government offered that. That's what wives are for. It'd be such a bad massage. That's what wives are for. Yeah, they're just going to create like robot masseuses that just wind up killing people.

Yeah, I take that back. I don't want it. You don't want it? I don't want it. So you can go check out this law enforcement transparency report from Coinbase on their blog. We're going to link to it, of course. Do you have any ending thoughts on this topic particularly? Yeah, cheers to them on the transparency report. You know, fuck them for also being a surveillance company. and having contracts with the same organizations

that are giving them the requests. Yeah, the IRS people. And this is just a perfect example, once again, that when you trust these regulated businesses with your Bitcoin, if you're holding it custodial, you're also, even if you're holding it self-custody, you're trusting them with your intimate private information, whether that's withdrawal addresses,

whether that's your home address, whether that's you holding a little passport up to your face and taking a selfie um like you're giving them that information that information is going to be stored indefinitely it is going to be shared it might it most likely is not stored securely uh so just know what you're getting into and and if you do choose to use a regulated uh service provider that requires this identifiable information that we call KYC. You know, you have to really intimately trust them and

you need to reduce as much exposure as you have. Like, don't go sign up for like nine, ten different services. If you must do the KYC route, make sure it's just, you know, one service, the bare minimum. And look for services that

tend to stand up for users' rights. I mean, River's a great example. I think they have a very good wall team in-house that really wants to protect the rights of the users and do the bare minimum and fight on behalf of the users. I'm going to throw Cash App in that bucket

as well. I'm sure there's others. Disclaimer, Cash App sponsored. Swan does a pretty good job. Swan as well. I think there has been an official announcement about what's going on in New York with Swan. It has to do with

the exchange that they use to facilitate the Bitcoin buys for their users. They got rug pulled in New York. And they're trying to get it up ASAP. And if you want to hear more about the dangers of KYC, go to nokyconly.com. Thank you, Bitcoin Q&A. .com, nokyconly.com.

We've got to keep leaning into this meme, freaks. KYC AML is the illicit activity. It puts us at harm. It does nothing to actually stop criminal activity. It wastes resources at companies. it leads to a massive misallocation of capital like chain analysis shouldn't exist as a company like imagine how many millions billions are raising money are just being wasted because companies are being forced to track this data and this activity and there's a little cottage

industries popping up against around it imagine if we were able to allocate that capital for something like actually like teaching kids having a good education system or fresh water better housing whatever it may be instead it's being allocated to create services that spy on you and treat you as if you're guilty uh before being proven innocent so kyc jelly yeah there's there's something there armchair contrarian kyc jelly is the website for plubnet oh okay kyc lightning network initiative uh run by a group of bitcoiners boss love bitcoiners working initiatives um And this is pretty cool. I wrote about it on the newsletter to get me all excited. Jeremy Rubin, he's doing an advent calendar, 25 days of Christmas type blog series. And last week on the 10th, he wrote a blog post on payment pools and coin pools, which I'm very excited about. this is something that has been talked about in the bitcoin space for quite a while john carvalho

and i got in depth with it on the the episode that we recorded a few months ago like many people don't know again we had this discussion last week on rhr you don't there are no bitcoins there's utxs we're still going on that debate's still ongoing but we're not going to have it here right now marty you agreed with me in your own fucking newsletter after that episode i know well we're not here to talk about it okay you you screenshot the screenshots i have the screenshot you have the receipts. Okay. They're up there. All right. But not every individual in the world will be able to own a UTXO. Not anywhere close to every individual will be able to own a UTXO due to the data constraints and the block space that exists on the Bitcoin blockchain. And so with

that fact in mind, many Bitcoiners, I think Greg Maxwell most famously has been running thought experiments. All right. If we take that at face value, not every human is going to be able to own a single UTXO, how do we make it so more humans can own partial UTXOs? And that is what Jeremy is proposing here in this blog post, a payment pool and coin pools that would allow multiple individuals to have part ownership of a single UTXO, which helps with scalability and potentially privacy as well, which Jeremy gets into in his post. Is there anything in there about, i i don't think there is i like look through it a little bit uh could be interesting using combination with lightning yeah i mean he does talk about coin join and it's like a quasi coin

join and when you're thinking about channel opens that could certainly have some interesting privacy um so like lightning is basically at its core is this idea that you can get the most out of a single utxo and this proposal is uh that a bunch of people can share utxo but they can also spend out of it um so that it's not it's not custodial uh situation yeah each each individual who has part ownership of the utx owns a a part of a private key i imagine you could sign that and take your your your part of the utxo out but i'm not quite clear like i mean i i think it's been uh it's been a decent while since we had jeremy on the podcast we should probably have him on soon yeah i was talking to him over the weekend he's gonna come on but i'm not quite

following uh i'm not quite following like it seems like there's a griefing situation here where like a bunch of people try and claim in like a high fee environment and i wonder how that's handled i want to ask jeremy ourselves jeremy if you're listening um we've been talking um the cool part about bitcoin scalability is you know we have a lot of people working on disparate things uh sometimes they're connected sometimes they can be worked together and they can they can complement each other um and it's just great that bitcoiners have as many options as possible yes um car can you pull up a chart just look at google bitcoin utxo set and see how large it is right now does mempool.space have that i don't know if they do uh i know jameson actually has

it on his um but i don't i forget he's got like a weird data site i can't remember the url at the the top of my head just google bitcoin utx as a chart should pop up somewhere um i forget i'm trying to think of the sites i haven't i haven't checked this chart in quite a while um now that's as river explained it so go back to the search page i'll um let me see keep going let's search lop after it I got feedback from a couple of the freaks that we should cut out this kind of

aspect of the show for the podcast feed for what it's worth deal with it freaks deal with it freaks you're not going to read what time we're at no god no I can't even tell anymore I don't have the data in front of me

yeah car it's not there There's, there's charts up there somewhere. Um, we'll find them though. Um, the, yeah. Um, so shout out to Jeremy. I mean, he's gone deep into many, um, many different topics during this advent, uh, calendar blog, uh, spree has been on, uh, so making Marty's bench job easy, very easy, even though I've only written about one of the articles out of the, uh, 16 that had been written so

far, but there's always fodder there. maybe i'll write about another one today because you got some backlog to work down i don't have a topic uh at the top of my head right now uh drew yeah drew writes about has written about in the past he's actually the early one of the early um people to not ring the alarm but make the public aware like hey um you're you're not going to be able to to own a whole not everybody's gonna be able to own a single UTXO. Let me see here.

What are we looking for? The number of UTXOs in existence. Here it is, statoshi.info. That's what I was looking for. There's Lopsite. Yes. So right now I'm looking at it, unspent outputs. there are as of the 16th there are 46 million 974 844 utxos out there how many 47 mil 46.97 mil

47 million yeah and that's one of the nice aspects so uh the larger the utxo set the number of active addresses uh the more data that nodes have to to hold and transmit and one of the nice things about the incentive structure of bitcoin is when fees go up people are incentivized to consolidate their transactions keep in mind there is some privacy impact there uh you are linking any of those utxos together naturally in a single transaction um but people tend to consolidate bringing down uh the number of utxos yeah and i got the number wrong i was looking at the total transactions with unspent outputs the unspent transaction output number is 77 million 731 754 that's what is that the correct chart that he has up

no go to um it's fine yeah it's fine we spent a lot of time on this yeah we're going on to bigger and better anyway that's part of the cool incentive structure that is uh the free market yes fees go down consolidate lower the utxo set which actually lowers the data burden for the rest of the users on the chain um makes it easier for people with bad bandwidth connections to the internet to download the full state of the bitcoin block and tour users and tour users as well and keeps cost and accessibility just down across the board yes um on the shout outs we have three shout outs this week first one blessings to marty and matt thank you bless you too uh you guys are laser focused on a better world thank you marty your ad reads at the

beginning of every rhr is my secret fetish don't ask why i'm not going to i just need to hear my favorite one more time give me a good performance sir i'm reading this now this rip is brought to by our good friends at the motherfucking Cash App! Hey, thanks for the shout out. Did he put like a bunch of A's in it or something?

A bunch of P's. A bunch of P's. Yeah. So you kind of got the pronunciation wrong there. Yeah, yeah, yeah. I tried my best. Thank you for the shout out,

freak, and the smile at the end. I'm happy that you like the ad rates. I try to make them fun. It's good for the user and the advertiser. You ever say, hey, Cash App,

If you're listening, you hear that. Hey, Matt and Marty, thank you for all the great content. I've been a listener for a little over a year and still look forward to RHR every week. Thank you for coming back, sir or lady. I'm a very technically capable individual who recently became a fun employee to fuck vaccine mandates, but have little experience with formal development. Given the gift of free time, I'm currently working my way through my web, Bitcoin and lightning development education and would love to get involved in an actual project. However, I have no idea where to start do you have any tips on how to get involved

or do you know any projects looking for someone to do relatively simple elementary technical grunt work thank you again for all your content you provide for us freaks all the best to you guys and the freaks out there yeah I mean that's the beauty of open source software there's a bunch of open source projects looking for help right now that's a good way to

prove yourself do a review start with projects like tools you actually use and enjoy you know start with start start small and start with things that you you really like and you use all the time yeah it's the easiest way to get involved yeah i know btc pay server yeah go on i was gonna say btc pay server has a very vibrant open source community with a lot of uh help when you're getting into that there's a lot of people there will be like here's what

we need to help on um yeah you don't have to just be a developer like there's a ton of other uh contributions that you can make and that's why it's important to always open source contributors I'm grateful for our open source contributor community it's not just devs but if you're a dev it is greatly appreciated yes if you're if you're a designer

if you can actually write technical content that is actually documentation all that stuff so yeah BTC Pay is a massive organization I would say start with some of the smaller projects that you use all the time consider it

yeah and it is a great way just to prove like hey I know uh here's my contributions to this open source project i'm a bitcoiner and that's like one thing these companies will ask you like what have you done it's like well i've actually contributed to this open source project here's here's my work you can go to my github and see what i've done and that's the only commits yeah that actually reminds me um so one of the uh initiatives i'm championing at bitcoin magazine is bitcoin 2022 free tickets to open source contributors uh if you're so far we've announced three every time every month we're announcing a new one right now it's bitcoin core btc pay server or the five major lightning implementations so that's lnd

c lightning eclair um morden and rust lightning uh and if you're a contributor to any of those projects with the commit before october 1st so don't go spam a commit now uh you're too late you can just you can you can go to b.tc slash conference you can apply you get a free

four day pass all the days of Bitcoin 2022 you're going to get a free ticket and if you're not going to if you're not one of those people you can get a free pass

you can use the code tftc to get 10% off oh Matt's not coming in with a bigger discount looks like that I mean if they heard it last if they heard it I got

I'm not allowed to share the discount code I said last week because we're trying to keep it on the... The DL. If it gets shared too widely, it's going to get discontinued. Okay.

Right? So I'm going to selectively do it. Okay. Right. Last but not least, last shout out of the week, a very important one, as Skeef pointed out, this is to inform everyone I am the self-appointed president of the Marty Jones fan club. Marty already retweeted it, so it's settled. It's true.

Applications for other officer positions can be submitted through a TFTC shout out and will be thoroughly reviewed. Selection decisions will be made based on the depth of knowledge on conspiracies and not sounding lame skeef at skeef underscore 25 on twitter and skeef bro you're you're falling into their trap of conspiracies we're just talking about theories okay people conspire they call them at the if you don't believe that women and men of power conspire to do things uh you're an idiot all right so we don't like just fall like

we get labeled conspiracy theorists if you like lean into the conspiracy thing skeef we're gonna work on this as the president of the marty jones fan club i'm a little disappointed in your your announcement uh shout out but we will get better i'm a very forgiving uh i don't even know what i would consider marty jones marty jones.com has already taken i tried thank you for your effort i assume someone actually named marty jones has it it was registered a long time ago um i would also like to do a shout out to any freaks we have in kentucky that were affected by the most recent tornadoes like it was it was i i'm i believe my understanding is that it was the longest on-ground tornado in

terms of mileage in in the history of this country did you see the videos of it the thing was massive it was fucking yeah it was scary it was like middle of the night like the only way it was it was like one of the creepiest videos ever because the only thing you could the only way you could see is like when the lightning would flash you'd see like how big the tornado was anybody in kentucky is struggling because of that right now our hearts are with you and we can help in any way let us know please do that shit's so fucked in um yeah skeef okay i'll give you that we'll debate it skeef we're not going to talk about the conspiracy definition here uh i'm on air speaking conspiracies a lot of them getting debunked

did you see the rogan episode peter mccullough dr peter mccullough i didn't are you talking to car or me you uh i'm looking at the screen i know you're not looking directly at me because my neck i have to i can only look straight no i told you i don't the only rogan episode i listened to was with the since he moved to spotify was the cnn guy i won what was his name sandra gupta yeah gupta yeah um i don't like the algorithmic ads thing you just they just like pop ads and like i'm i will not comply okay you can just easily like you don't even have to like skip 15 skip 15 you just like hold it and you just swipe. I know.

Swipe. Yeah. It's been annoying while driving. I refuse to support it. Maybe I'll torrent it in the future. The DraftKings one is so brutal. Welcome to DraftKings. They don't even like wait for like a break moment.

No. It just like shoots on you. Yeah. Yeah. No, it's infuriating. I can't. Well, anyway, as Rad Laddy says, the Rogan app is required watching for everyone,

even you odell i mean it's just yo rad download the fucking episode and then send me the mp3 okay since you didn't watch it i'll get it i mean it's pretty fucked up if you watch that episode you're not in range like they were they decided from the beginning vaccines were the only way to do it they brushed viable uh treatments viable treatments preventative treatments that there's no money to be made no and everybody yeah i tweeted that out yesterday people were like oh i was like they're they're sweeping the viable treatments under the drug under the rug uh in favor of vaccines which are much more profitable who do you think's making those treatments too it's like yeah the pharmaceutical companies but now there's a consensus that the

pharmaceutical companies like are obviously in everything for a profit yeah like before it happened but the the important thing here is the generic drugs have been around for decades and so their patents aren't aren't valid anymore they're generic so they're cheaper so the pharmaceutical companies

don't make as much money off of something like a vaccine which is trigger patch requirements look at the Moderna stock price yeah just look at the Moderna stock price

like every single person in this country should be upset at the Moderna stock price and the Moderna too like that's a shady company that popped up out of nowhere Whitney Webb and I

went into that in our last episode like Moderna it's got some weird people behind it and it was like a Theranos like company until this vaccine came to market um and yeah and young people you should like so you thought

you said the last one you watched with sanja gupta peter mccullough called out sanja uh particularly one since the spotify move up uh particularly for going on like sesame street and telling children that they should be getting vaccinated which is he did that right after the episode yeah and it was i mean he said in this episode like this is medical malpractice you're not allowed to you're actually definitionally like as a doctor not allowed to do that like that type of coercion like publicly

like there will be somewhat like Nuremberg trials because of this shit like people are dying like young people you think so? I hope so I mean dude you actually think so? look at all the soccer players dropping like yes it's going to be obvious do you think there's going to be trials? there should be

that's not what I asked well strong men got to take over and really step in and say all right This is fucked up. That's one I'll bet on. Fauci, we're not listening to you. There will be no trials. FDA, we're not listening to you.

CDC, we're not listening to you. You're all fucking corrupt. I'm not saying whether or not there should be trials, but there will be no trials. We'll see. I'm not going to bet on that. The country's all signed liability things. The timeline on that is quite extensive.

We shall see. Go watch that episode. I'm going to be on my deathbed. I was like, I told you so, Marty. uh there will not be no five more years software all caps he agrees with me software updates mercury version 0.4.65 has been released matt has always paused me if uh anything important you want to point out sparrow version 1.5.5 has been released. BISC version 1.8.0 has been released. Blue Wallet version 6.2.15 has been

released. Caravan version 0.3.13 has been released. Zap Desktop version 0.7.5 beta has been released. Umbrella version 0.4.10 has been released. No need to rush. I don't think there's any crazy bugs that these updates are passing. No disclosed vulnerabilities. These updates are there for you uh no no need to rush to do it um test it out check it out actually reminds me i didn't realize steve mentioned uh steve lee uh mentioned uh a project lead at spiral which does ldk i didn't realize blue wallet is implementing ldk they've been working on it for a decent amount of time now boss like six months seven months or something like that instead of the default custodial lightning wallet they currently have yeah i want to mess with ldk too um but remember

like the puppet jack video like where they use blue wallet that's why yeah interesting hell yeah that was a dope video if you haven't seen that yet either it's pretty funny it's pretty funny the good development kit video like entertaining yeah i love the square or spiral btc team excuse me i'm still i had to correct you the other day uh block it's gonna take a while to get used to block versus square yeah i think their their name officially i'm gonna get used to very i've already kind of gotten used to yeah it'll happen easily it'll happen easily um people are already calling facebook metaverse which is or meta meta it's meta not metaverse whatever the fuck they named themselves get your shit straight marty i'm sorry i'm sorry i'm sorry um big week for raises in the

bitcoin space uh galoy the galoy team raised three million dollars uh in a seed round to help communities uh in institutions use bitcoin as money uh don't know what the valuations in here can't find it um but yeah the galoy team there is no valuation in there it's the only announcement without evaluation they've been doing incredible work um they're building uh tools again as they said to get to help communities and institutions use bitcoin as money i like that mission you mentioned that they're the organization behind the bitcoin beach wallet right yes i did not but they are yes they're the team behind the bitcoin beach wallet as well and bitcoin bitkite is chiming in from twitch saying don't sleep on the uh the gloy team the whole idea of the bitcoin beach

wallet is um it's a it's a custodial wallet used by a local community in this case el zante the majority of funds are held on chain in a multi-sig wallet that is held by trusted community members. And then they have a portion held in the fully custodial single-sig lightning wallet. And that's because there are no multi-sig lightning wallets yet. So basically, the model is if they get hacked, they lose a small portion in the lightning wallet. And the majority of funds are saved in the on-chain wallet as long as multiple community members don't collude with each other to steal the money. And as a result, you get lower fees and easier UX because it's like a custodial wallet. It's a beautiful thing. It's a beautiful thing. Shout out to Gloy on that

raise. Ledin.io. This is big news. And I wonder if this is what our good friend Rodolfo was teasing the other week. It is what he was teasing the other day. Ledin raised $70 million and also announced a Bitcoin-backed mortgage product. So they raised $70 million in the Series B financing round at a $540 million valuation. That's pretty impressive. Shout out to Mauricio and Chris doing incredible things up

there. Very happy for you guys. There's some massive demand for this product. Yeah. So the Bitcoin backed mortgage product is a big deal. Something that Bitcoiners have been waiting for and pondering about. Will this come? When will it come? And it seems like Ledin is the first to market.

Is it safe to say that? uh no so there's another uh company that's a bit smaller called coin homes that is also doing it okay um i'm aware of those two and like basically the idea here is instead of a typical bitcoin backed uh loan where you put 150 percent 200 percent bitcoin as collateral and then you you loan out uh underneath that about half of that um and and that's tax-free because it's a loan rather than selling it in this case um what most people don't realize if you go to a bank and you say you know 95 of my net worth is in bitcoin and i don't have a traditional salary um they're gonna get the fuck out of our office just think of you as yeah a completely poor person you're

like the poorest person in the world so this product the idea is you you put up your house as collateral just like you would uh in the home if you took a mortgage just as you would if you a mortgage you put your home as collateral you match the value of that home with bitcoin as well um so you borrow against both if the volatility of bitcoin drops you below whatever threshold they've set you have two weeks to uh top it up instead of like relatively quick liquidations which we see with these other products um and then at the end when you pay off all your mortgage you you get your Bitcoin back. So this is obviously not without risk. I'm not sure if they're using a multisig format, how they plan on doing that. But in general, even if they are using a multisig

format, they're going to be holding a key. A third party is going to be holding another third party is going to be holding a key and you're going to be holding a key so they can collude and take your money. It is leverage. You know, you're borrowing against your Bitcoin. If the price goes down substantially uh you might lose that bitcoin uh but all that said i mean there's massive demand for this we're going to see a bunch of companies start uh fighting in this space i expect it to be you know we should bring that right growing space with a lot of options and it's just good as someone who's you know looking to buy a lot of land uh it's nice to have another option available and this is going to be available for us and canada yes uh and if we get more

competitors in the space it'll drive down the cost of capital which make it even more appeasing for bitcoiners and going back to the multi-sig thing yes they the two third parties can include let in whoever's this if they're using multi-sig the other signature but they're highly incentivized not to the or it's fully custodial or it's for like a block five product um but they're highly incentivized not to screw you over i mean i guess because it's the first time they do it it's done and their product's done, you forego long-term. I mean, banks screw over people all the time. BlockFi screwed over their users many times

and they're still in business. The reason it's an interesting option is because if you sell your Bitcoin or use your Bitcoin to buy the house, you're going to be paying capital gains tax. So if you're paying 30% to 40% on that, you can avoid that by doing this. But obviously, it's not without risks

and you should assess your situation. And you don't really want to use a portion of your stack that is substantial. like it should be like be very conservative about it because if bitcoin does fall 90 which it has you know many times in the past uh you need to be able to to fill that up otherwise you're you're going to get forced sold it's going to get liquidated on you which we saw march 12th we just saw people get fucking liquidated fucking shit done march 12th and obviously you lose privacy in general because they see your transactions your kyc yada yada yada here's

how Ledin described it to Bitcoin Magazine. Clients will be able to blend an equal amount of Bitcoin and property collateral as part of a mortgage loan. The unique collateral structure, which relies on the stability of a real estate to buffer against the volatility of Bitcoin, was designed to provide clients with a generous window to service their Bitcoin collateral during times of high market volatility. Ledin said the offering is currently in pilot mode. The company expects to launch broadly in the U.S. and Canada early next year and is targeting over 100 million in $100 million in Bitcoin-backed mortgage originations by the end of the first quarter.

So they're going big. They're expecting a lot of demand from this. Like we said, there is a lot of demand around it. People have been talking about it since that's what Ragnar wanted to do back in like 2016, I believe, 2015. I mean, he also wanted to put real estate on the blockchain. Yeah, there's something around there.

Yeah, people have been wanting this this year. Shout out to the Ledin team for bringing it to market. pumped to see that product flourish and people use it. And yeah, I could potentially use it in the future. Coindesk is the site that I'm going to to announce the institutional Bitcoin broker. NYDIG did a raise.

They did a $1 billion funding round valued at $7 billion valuation. So West Coast. Largest single round in Bitcoin history. Yeah. So that's pretty massive. where we have companies in the space. NYDIG came in big over the last year, two years,

and they're keeping that momentum going. A billion-dollar raise is fucking incredible. Shout out to them. You got anything to add to this? Disclosure, I'm a shareholder of NYDIG because of the bottle trade sale. Boss. So you happy?

It's a big raise. It's a big raise. Yeah. All right. We've got two more items on the list. I would say one thing that's interesting is largest raises in this industry's history and it's a Bitcoin-only firm.

Why are they Bitcoin-only? I'm going to do what you said, Joe. Do they? Okay, well, they're shitcoin minimalists. How many Bitcoin does NYDEC hold on their balance sheet? That's a good question, Rob. No idea. Yeah.

Hopefully a lot. I'm going to skip to the last. As a shareholder. there. I'm going to skip to the last list and we'll go back to the second last on the list. Last on the list is this analysis that I wrote about earlier this week from Collider, which is a margin trading platform and exchange where people can go and trade on margin if you want to. We don't recommend trading on margin. As we said, Bitcoin has very high volatility and you can get margin call pretty easily, but there are professional traders that do like trading on

margin. And these traders do provide a lot of liquidity to the Bitcoin market. And basically what this Collider blog post gets into is describing how the Lightning Network, when implemented into trading strategies and implemented into exchanges, really changes the amount of collateral that a trader needs to feel comfortable on an exchange. The way they describe bit we'll get to the skinny here is if you're doing trading this margin type trading and you're using strictly on-chain transactions and on-chain bitcoin traders will typically or the trader that they spoke with aka bay or orca bay excuse me would hold 30 the source here is orca bay yeah okay continue they would uh they would hold 30 of their their trading value that is in positions

on the exchange just in case they need to top up if the price were to go against their positions. So the whole point of this is that you can top up relatively easily by just lightening as fast? Well, easier. But the positive externality from that is the comfort with which these traders have that 30% of the value at risk gets reduced to 5%, which is pretty significant.

It means they have to hold less coins on an exchange because they can just send from a personal Lightning Wallet to the exchange instantaneously. And so it's going to have interesting positive externalities in terms of custody. You're going to have less coins on the exchange. Yeah, I mean, unless you have a routing error or something and the payment doesn't go through.

Well, that's why they have 5% on the exchange. That was actually cited in the article too. The TLDRs stay on the stack sets. Yeah, well, you can't discount the fact that people are trading. Traders do have a beneficial value to the liquidity of the market. Thank you for your sacrifice, traders. StoneRidge has 10,899 Bitcoin on their balance sheet as of October 2020. Thank you, full-time Bitcoin.

That's a long time ago. Yeah. What do you think about Lightning and exchanges? You're a bit mum. Deposits, withdrawals. you know i obviously there's a nice advantage from something like strike that you can just pay any invoice you know directly from them they have to deal with a ton of liquidity management uh on the deposit side on the withdrawal side which is like what strike does where you'd like

pay an invoice um it makes it makes a lot of sense uh the exchange has to deal with the actual liquidity management make sure there's routes open to where the notes they're paying uh on the deposit side it could be like a worse it could be a worse ux uh and i think there's still a lot of growing pains there i mean it always comes down to liquidity with the lightning network in between exchanges i think it is you know obviously very advantageous because they can just have super fucking huge private channels yeah um and and traders can move between the two now i would say though that there's really not that much incentive for a leading exchange to do that uh it's more like a challenger type of thing right because if you're a leader leading exchange

you kind of want to hold them in you know you don't want to allow them to easily trade between yeah um different exchanges there's a lock-in effect there right yeah well matt started a tftc matrix channel that i just i just shotgunned it yeah i i started another but marty you should join it i sent you the link yeah i got to figure that out we had the freaks are loving it they're They're having tftc.chat, freaks. Is there any nudes in there yet? Are there any nudes? Yeah.

No, we have a good moderator. Car was just like, yeah, yeah, there's nudes. Did he just upload nudes? No. Please don't send nudes to the Matrix chat. We have moderators. So it is not censored at all. All right, I'll get in there.

I got to get the link. Yeah. the link is tftc.chat marty tftc.chat uh matt i want you to put your right ear to your right shoulder if you can please right now i can't do that oh shit uh this is a tight wrap for almost an hour and a half and we're on our last topic uh which is the fact uh let's pull these comments up uh yeah i put in our tftc chat car between me and Matt, the tweet of Jen Psaki talking about why inflation is high, particularly as it pertains to beef inflation. Let's just roll the tape and then we'll roll the clip.

We'll talk about it. Go ahead. There are several progressive groups and lawmakers who are increasingly vocalizing the idea that inflation, high inflation is being driven by corporate greed, including companies with high profits some of whom have met at the white house with the president in recent months um does the president endorse that idea does he think the corporate greed is the big driver of inflation right now well i think that the president thinks the way people across the country american families uh digest inflation is by price increases and if you look at industry to industry it's a little different so for example the president the secretary of agriculture have both spoken to what we've seen as the greed of meat conglomerates that is an area

when people go to the grocery store and they're trying to buy a pound of meat, two pounds of meat, 10 pounds of meat, the prices are higher. That is in his view and the view of our Secretary of Agriculture because of, you could call it corporate greed short. You could call it jacking up prices during a pandemic. There are other areas where we've seen increases because of supply chain issues. And we're seeing those increases around the world as it relates to gas prices, oil supply, and things along those lines. So I would say there's some areas where we have seen corporations benefit, profit from the pandemic. And certainly the president would agree with that component. I don't know the full context of all of their remarks.

This is dangerous. This is dangerous talk right here. I mean, Rodolfo, he's the one who brought it to light. You go to NBK's Twitter page, but this is how the rhetoric starts that that leads to very dangerous like communist uh price fixing yeah so this is a this is inflate obviously this podcast focuses heavily on macroeconomics inflation money um and what we've seen over the last two years is the government print in conjunction with the federal reserve trillions of trillions of dollars and throw that on the market at the same time shutting down the economy, uh, and enforcing workers to stay home from work and airdropping money in their bank accounts where they're then able to go out into the economy and use more and more

monetary units to fight over less and less, uh, economic goods. Uh, because, uh, again, you're, you're trying to exert top-down control in a very complex system, which is the economy of a government keep going down car um and um i would just say uh i i i i definitely agree with what you just said uh in this current situation uh there's it's probably a mix of both you know the money is broken uh it is the economy is poorly managed uh free markets ultimately fix this uh as as frictionless as possible for those free markets to exist the better they will find their real price uh competition does work in the case of food production in this country uh there is not it's not really a true free market so that's why i

would say that there is a little bit of a combination there and this is one of the reasons why it's it's so important for for more localism to take place for more small time food production to take place i completely agree we can have proper competition you know without that regulatory burden that that leads to these you know small closely held industries well this is why it's so fucked up it's because the government has led to this consolidation of business particularly in like the food processing it's like on top like and so this is a problem they've created then they're turning around and like blaming these people. And on top of that, so like at these processing plants, you have very strict COVID regulations, which stops people from like enough

people from getting to them to produce the amount of food necessary to get to the economy. These vax mandates are basically decimating that workforce where people say, I'm not going to get it. So I'm not going to go to work. Therefore it compounds the problem. And like Rodolfo said, this was Stalin's line. It is the excuse used to take over the farms. This is how tens of million people starved in the Soviet Union due to this type of central planning. So they're trying to gin up a bunch of hatred throughout the economy between people who don't really understand the intricacies and the nuance of what has led to these price increases. And they're trying to point at the greedy meat producers as the problem when it's really

government regulation and printing money and attempt to top down control of the complex economy that we live in. This is scary shit. Like the president and the people who speak on behalf of him should not be saying this. This is a very dangerous road they're going down. And another thing that should be said too, this started with Trump. Like Trump started the lockdowns. He started the economic lockdowns and the money printing, started his administration. This is bipartisan from one administration to another is the problem is the government it's it's fucking everything up and now that they fucked everything up they have no no decency to even like attempt to take blame for it or own up to their mistakes and have the introspection to look back and say

hey maybe we shouldn't have shut down the global economy uh maybe we shouldn't have printed all that money maybe we shouldn't have forced people to stay home from work maybe we shouldn't be mandating these vaccines when we really need to get more and more goods to the economy like maybe uh maybe we fucked up hand up no they can they're not doing that and if you actually have no responsibility no no it's it's fucking disgusting and but it is dangerous like i really want to stress that like they continue down this line of thinking and keep beating this drum industry industry industry industry and the masses are are ginned up and they're they're going to turn and they're going to be like yes you guys should the government should uh take over

the food industry and that's going to lead to mass starvation secure your food freaks secure your food freaks just recorded with texas slim we talked about ways in which you can do that go go shake your local rancher's hand and really push again and that's the thing i said with slim earlier you freak listening to this too like push these issues like there should be more processing plants. We shouldn't have four massive processing plants that constrict the flow of our food. There should be many more. There should be hundreds. There should be thousands throughout the country. You should have a processing plant per county. The regulations around the restrictions and the compliance necessary to start one of these plants is

completely criminal. People should be able to process meat locally and distribute it locally, which should drive down cost we should make a more distributed food network which make us more secure in the long run like this is a very that's the answer right there yeah it's right there in front of us freaks and that's the other thing that slim and i got onto too and it was building on what safe does in the fiat standard where he applies like bitcoin uh thinking to the traditional monetary system like what is a full node what does the full node topography look like in the fiat monetary system. You have very few full nodes, uh, with the federal reserve and its member banks, which might not even be full nodes. They might just be, um, some like SPV client or something

like that. Uh, but like with the food stuff too, like the, they have four major nodes in the processing industry and that is very centralizing. Like we want hundreds, we want more and more and more of these processing things, uh, processing plants, excuse me, uh, that will make us more energy, or excuse me, more food secure and similar with energy. We want more and more. That's actually one thing we do well here. We have a bunch of energy producers, however, with the federal mandates to particularly in oil and gas, which don't allow new mineral leases on federal lands. That's constricting supply from the market too, which is causing energy prices to rise. It's happening in Europe, all over the world. We live in a cloud world. These people

are fucking ruining the global economy right in front of our eyes. It's happening and they're trying to blame anybody but themselves or they're not taking any responsibility for this it's really fucked up and it's really dangerous if we don't begin speaking out against this and pushing back things are going to get very very bad and we do have the ability to do that that's why we have this show that's why we have you freaks in the live stream this is why we do all this like we need to get these messages out there i wish i could give you a massage through the uh through the camera cheers yeah no homo um yeah when tftc chickens in the backyard that's a good question i have to figure out is can we do that in austin yes you can do that wherever you can't do it in

pa you have to get like crazy not wherever it's a crazy maybe not in the northeast in a lot of places uh but you can definitely do it in austin no i know my hometown i do know somebody has chickens in the backyard but they literally have to like go to a crazy amount of uh like township meetings and get crazy permitting just to have a few chickens in the backyard. I mean, at most places in Texas, I assume you can just have chickens in your front yard. You don't even have to have them in your backyard.

All right. We're going to get some chickens. Let's get some chickens. Guard chickens. Yeah, just put some chickens in your fucking backyard. Don't ask permission, Marty. Okay. All right. That's the actionable advice of this rep. We have anything we want to riff on before we wrap

up here? No, you got bid tabs tonight, right? We got the return of Justin Moon to Austin BitDevs I'm very excited to see to see Justin

very excited for BitDevs very excited for Coopers right before Christmas the vibes are always high yeah I'm very excited

well enjoy that BitDevs in Austin it's always a good time and send everyone my love over there and I'll see you guys

next week we'll see you guys next week on the 23rd Festivus we're gonna have a Festivus celebration this year

um we got to figure out what our feats of strength are going to be we're going to do some strength feats on on the live stream um we have to lift something even though you may have just hurt yourself lifting but sometimes i think you're talking to car i still don't realize i'm talking i'm talking to you so the screen the screen where i see you hopefully i won't be a fucking pain all right i agree all right freaks thank you for joining us go spread the word subscribe share retweet whatever you need to do love all y'all peace love.